An account holder has approached an Islamic bank seeking finance to settle the debt he has incurred as a result of purchasing a plot of land

Fatawa Question

An account holder has approached an Islamic bank seeking finance to settle the debt he has incurred as a result of purchasing a plot of land. He had entered into a purchase agreement with the erstwhile owner of the property at the time of purchase and made a 20 % down-payment of the purchase price whereby the balance was to be settled by him upon completion of three months from the date of purchase. The unpaid amount was secured by the seller by way of a bank guarantee issued by the Islamic bank on behalf of the customer. Due to liquidity constraints, the customer has now requested the bank to finance the payment of the purchase price in full, for a period of two years with pre-agreed payment terms. The Islamic bank is willing to accommodate the customer and has requested the Shariah Board to provide a suitable structure to do so.

Fatwa

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Publisher

Islamic Finance News

Publication Date

2013-10-09

Country of Publication

Malaysia

Main Subjects

Economics & Business Administration
Islamic Studies

Data Type

Fatawa

Language

English

Record ID

BIM-783613

• APA
• MLA
• AMA